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2015 Credit Suisse Energy Summit Greg Garland, Chairman and CEO February 24, 2015 Vail, CO Execution
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Page 1: 2015 credit suisse final

2015 Credit Suisse Energy Summit Greg Garland, Chairman and CEO February 24, 2015 Vail, CO

Execution

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Cautionary Statement

2

This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this presentation was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in crude oil, NGL, and natural gas prices, and refining and petrochemical margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our crude oil, natural gas, NGL, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations, under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. This presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of the presentation materials or in the “Investors” section of our website.

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2014 Accomplishments

3

Growth $4.0 B growth capital program

Advanced 100 MBD NGL fractionator Advanced 150 MBD LPG export facility Acquired Beaumont Terminal, adding 7 MMBbl storage Commenced Bakken to Patoka to Beaumont pipeline projects Advanced USGC petrochemicals complex Completed 550 MM Lb/yr 1-hexene plant Added 200 MM Lb/yr of ethylene capacity at Sweeny Acquired Spectrum, a specialties lubricants business

Phillips 66 Partners (PSXP) Delivered over 100% of EBITDA growth Formed Bakken joint ventures

Returns $1.6 B sustaining capital program

Reliable operations enhance returns

Record low TRIR across Refining, Chemicals, and Midstream

Increased export capacity to 1 MMBD

Ran 94% advantaged crude

Sold interest in Melaka Refinery

Increased crude rail capability to 180 MBD

Competitive ROCE

14% Total Company

32% Marketing & Specialties

27% Chemicals

13% Midstream

12% Refining

Distributions Returned $4.7 B to shareholders

Paid $1.1 B in dividends

Repurchased $2.3 B of shares

PSPI exchange $1.3 B

Increased dividend rate 28%

Reduced outstanding share count by 7%

Repurchased 29 million shares

Completed PSPI 17.4 million share exchange

Capital structure

$8.7 B debt at year end

$5.2 B ending cash balance

14% net debt-to-capital ratio

PSXP increased unit distribution 51%

See appendix for footnotes.

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Operating Excellence

4

Industry Average

Total Recordable Rates Incidents per 200,000 Hours Worked

’08 ’10 ’12 ’14 880

450 430 300

2008 2010 2012 2014

Refining Environmental Metrics

93% 90% 93% 94%

2008 2010 2012 2014

Refining Capacity Utilization %

6.5 5.6 5.7 5.7 5.8

0.3

2008 2010 2012 2013 2014

Midstream Growth

Operating Costs and SG&A $B

Phillips 66 CPChem DCP

See appendix for footnotes.

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Energy Landscape

5

Historical and Forward Crude Oil Prices $/bbl

0

30

60

90

120

2009 2011 2013 2015 2017 2019

WTIBRENT

Supply outpacing demand

Weaker global demand growth

E&P production forecasts uncertain

U.S. infrastructure growth slowing

Source: Bloomberg

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A Diversified Downstream Company

6

Refining Midstream Chemicals Marketing and Specialties

G&P, pipelines, fractionation, storage and export facilities

M&A and organic opportunities

Free cash flow yield 5-10%*

CPChem, primarily Olefins & Polyolefins in North America and Middle East

Advantaged ethane based feedstock cost structures

Free cash flow yield 20-25%*

Operate in all five U.S. PADDs with 2.2 MBD of refining capacity

Improving yields, accessing advantaged crudes

Free cash flow yield 5-15%*

U.S. Marketing, International Marketing and Lubricants

High return and stable earnings business

Free cash flow yield 15-25%

*DCP Midstream, CPChem and WRB free cash flow yield calculated at the enterprise level. See appendix for footnotes.

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2018E EBITDA 2014 EBITDA

Fee Based Market Based

Midstream

7

NGL NGL fractionation capacity growing to 200 MBD Fractionator One start up 3Q 2015 LPG export facility start up 4Q 2016 Sand Hills/Southern Hills expansion

Transportation Beaumont crude/products hub Bakken to Patoka/Beaumont pipelines

PSXP Bakken joint ventures Eagle Ford Gathering System Cross-Channel Connector Pipeline Organic and M&A opportunities

DCP EBITDA excluded. See appendix for additional footnotes.

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PSXP 1Q 2015 Acquisition

8

Drop down assets 33.3% interest in Sand Hills NGL pipeline 33.3% interest in Southern Hills NGL pipeline 19.5% interest in Explorer refined products pipeline

Public equity issuance of $456 MM

$200 MM consideration for drop $256 MM used for growth and revolver paydown

Public debt issuance of $1.1 B $680 MM in cash used for drop $412 MM repayment of sponsor loans Investment grade credit rating

Total consideration to PSX of $1.1 B 9.5x multiple on 2015E EBITDA of $115 MM $130 MM in take-back units

Net cash to PSX $1.3 B includes loan repayment

See appendix for footnotes.

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Strong PSXP Growth

9

180

1,100

2014 2018E 2014 2018E

Public LPPSX LPPSX GP

$MM

800

100

Focused on top-tier distribution growth

5-year 30% LP distribution per unit CAGR from 4Q 2013

Provides significant growth in total distributions

$230 MM organic growth project capital

Bakken joint ventures

Eagle Ford Gathering System

Cross-Channel Connector Pipeline

MLP-qualifying EBITDA in excess of $1 B post 2018

See appendix for footnotes.

Run-Rate EBITDA Distributions

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PSX LPPSX GP

PSX Value Uplift

10

2018E PSXP Value to PSX

Growing GP key value lever

Fee-based business model

Growing cash flows

Incentivized to grow value at PSXP $10-13 B

$5-7 B

$25-35/share $545 MM

Distributions Enterprise Value

See appendix for footnotes.

$15-20 B

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0

20

40

60

80

100

120

2009 2010 2011 2012 2013 2014 2015

WTI NGL

DCP Midstream

11

Historical Commodity Prices $/bbl One of the largest G&P, NGL producers

and NGL pipeline operators in North America

Reduce capital and costs, as well as increase capital efficiency

Focus on maintaining strong position in key basins

Zia II, Lucerne 2, and Keathley Canyon in service in 2015

Source: Bloomberg & EIA

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0

30

60

90

120

150

0

10

20

30

40

50N.A. Spot HDPE Chain Cash Margin (cpp)Brent ($/bbl)

Chemicals Environment

12 Source: IHS Chemical Data & Bloomberg

N.A. HDPE Chain Cash Margin v. Brent

2009 2010 2014 YTD 2015 2012 2013 2011

Ethane remains preferred feedstock

Naphtha disadvantage narrows with low oil prices

Record 2014 ethane chain margins, expect good chain margins to continue

Expect high operating rates

cpp $/bbl

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CPChem

13

50/50 joint venture with Chevron Corp.

Industry-leading returns

Geographically advantaged

10.5 B Lb/yr worldwide ethylene capacity

Strong global aromatics position

23% increase in 2014 EBITDA

USGC Petrochemicals project on track $6 B estimated capital spend 35% complete, start-up 2Q 2017 3.3 B Lb/yr ethane cracker 2.2 B Lb/yr polyethylene production

$2.9 B self-funded 2015 total capital

$1.3 - 1.6 B/yr incremental EBITDA by 2018

See appendix for footnotes.

Phillips 66 Chemicals ROCE

0%

5%

10%

15%

20%

25%

30%

35%

2009 2010 2011 2012 2013 2014

Range of peer ROCE Phillips 66 Chemicals ROCE

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Refining

14

Atlantic Basin/Europe 588 MBD

Gulf Coast 738 MBD

Central Corridor 492 MBD West Coast

360 MBD

Light/ Medium

Heavy

Worldwide

Improving Returns Increasing shale crude runs at Alliance Refinery

Adding access to Canadian and inland crudes on the West Coast

Accessing North Dakota crude

Improving yields at Sweeny, Lake Charles and Bayway Refineries

Increasing Jones Act ship capacity

Portfolio Management Melaka Bantry Bay Whitegate

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0.0

0.5

1.0

1.5

2009 2010 2011 2012 2013 2014

International Marketing Specialties U.S. Marketing

Marketing and Specialties

15

High-returning businesses

U.S. Marketing Wholesale network ~8,600 branded sites

International Marketing Low cost, high volume business ~1,520 sites

Specialties Finished lubricants Base oil joint venture

Adjusted EBITDA $B

Avg. $1.2 B

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Capital Budget

16

Estimated 2015 $4.6 B

PSX Sustaining Refining ReturnsM&S Growth Midstream GrowthPSXP Growth

$3.4 B Growth capital

Sweeny Fractionator One

LPG Export Terminal

Bakken to Patoka/Beaumont pipelines

Beaumont Terminal expansion

$1.2 B Sustaining capital

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6.4

8.4

2009-2014 Avg. 2018E

Refining Midstream Chemicals M&S

EBITDA Growth

17

Adjusted EBITDA $B

Corporate not included in bars on chart, but included in totals.

Greater than 30% increase in EBITDA

Cash flows less volatile by 2018E

2018E portfolio shift to higher-value businesses

20% Midstream

25% Chemicals

40% Refining

15% Marketing & Specialties

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Distributions

18

Dividend Growth Quarterly ¢/share

Share Count and Capital Returned

150% dividend growth

624 MM

590 MM

546 MM

$6.2 B

$2 B remaining authorized share repurchases

4Q 2012

4Q 2013

4Q 2014

3Q 2012

1Q 2015

20

50

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Midstream PSXP Chemicals M&S Refining

Compelling Investment

19

Enterprise Value

2014 2018E

Diversified business lines

Growing Midstream and Chemicals

Commitment to distributions

Strong balance sheet

Expected multiple expansion

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Institutional Investors Contact

Appendix

Kevin Mitchell Vice President, Investor Relations

Rosy Zuklic Manager, Investor Relations

[email protected] 832-765-2297

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Investment Sustain operations Fund Midstream and Chemicals growth Generate competitive returns

Distributions Dividend growth Repurchase shares

Capital Structure 20-30% debt-to-capital Aggressive use of PSXP

Disciplined Capital Allocation

21

Distributions Reinvestment

2014E – 2016E

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Cash Build/ Other

Capex/ Investments Distributions

Uses

22

$1.5 B

Debt-to-Capital 28% Net-Debt-to-Capital 14%

$6.8 B

Share Repurchases $5.0 B Dividends $1.8 B

$5.6 B

Growth $3.4 B Sustaining $2.2 B

Debt $9.6 B

CFO (Excl. WC) $9.6 B Working Capital ($0.05 B)

Cash From Operations Capex & Investments Distributions

2013 – 2014 Cash Sources and Uses

Debt-to-capital and net-debt-to-capital as of Dec. 31, 2014. Data includes discontinued operations.

CFO

Asset Sales

Debt

Sources

$13.5 B

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Free Cash Flow

23

0.8 0.5

0.3

CFO (excl. WC) Sustaining Capex Free Cash Flow

0.9 0.7

0.2

CFO (excl. WC) Sustaining Capex Free Cash Flow

Midstream $B

Chemicals $B

Average from 2009-2014, DCP Midstream, CPChem and WRB free cash flow calculated at the enterprise level

2.5 1.6

0.9

CFO (excl. WC) Sustaining Capex Free Cash Flow

0.7 0.6

0.1

CFO (excl. WC) Sustaining Capex Free Cash Flow

Refining $B

Marketing & Specialties $B

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32% 27%

13% 12%

M&S Chemicals

Midstream Refining

-10%

0%

10%

20%

30%

40%

Average Capital Employed ($B)

Corporate

-5%

24

2014 Adjusted ROCE

P66 Total 14%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

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36%

27%

15% 17%

M&S

Chemicals

Refining Midstream

-10%

0%

10%

20%

30%

40%

Average Capital Employed ($B)

Corporate -2%

25

2014 Adjusted CROCE

CROCE defined as Adjusted Net Income plus Depreciation and Amortization divided by Average Capital Employed.

P66 Total 17%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

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20.8 22.4 21.8 22.0 22.2 22.0

7.0 6.2 6.2 6.2 6.2 8.7

3.5 5.4 5.3 5.0

3.1 5.2

25%

22% 22% 22% 22%

28%

2012 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014Equity $B Debt $B Cash & Cash Equivalents $B Debt to Capital

26

Capital Structure

20- 30%

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-2

0

2

4

6

8

10

2009 2010 2011 2012 2013 2014 2018E

Refining Midstream Chemicals M&S Corporate

$B

27

Adjusted EBITDA

Average is 2009 through 2014.

Avg. $6.4 B

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1.1

1.9 2.5

3.4 3.4

4.2

2009 2010 2011 2012 2013 2014

Adjusted EBITDA $B

28

Chemicals – CPChem

Reflects 100% CPChem.

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1.0

1.2

1.4

0.9 1.0 0.8

2009 2010 2011 2012 2013 2014

Adjusted EBITDA $B

29

DCP Midstream

Reflects 100% DCP Midstream.

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Phillips 66 Partners Asset Base

30 Sand Hills, Southern Hills and Explorer pipelines targeted closing early March 2015.

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Footnotes

31

Slide 3 Capital program includes selected joint ventures. ROCE numbers are all on an adjusted basis. Slide 4 Injury statistics do not include major projects. Industry Averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, CPChem – American Chemistry Council (ACC), DCP – Gas Processors Association (GPA). Slide 6 Free cash flow yield based on 2009 – 2014 average Slide 7 EBITDA excludes DCP but includes 100% PSXP EBITDA. PSX’s equity ownership of Sand Hills and Southern Hills pipelines to be acquired by PSXP, targeted closing date early March 2015. Slide 8 Debt and equity issuance amounts are gross of fees. Transaction between PSX and PSXP eliminate in consolidation. The net impact of PSXP’s 1Q 2015 public offerings to PSX’s consolidated balance sheet is an estimated $1.6 billion increase in cash, an estimated $0.5 billion increase in non-controlling interests and an estimated $1.1 billion increase in long-term debt.

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Footnotes

32

Slide 9 $230 MM organic growth capital includes 2014 and 2015 spending. Slide 10 2014 ending PSX share count used in $/share calculation. Distributions from PSXP to PSX eliminate in consolidation and thus do not impact PSX’s consolidated cash balance. Enterprise Value calculated by multiplying distributions to average industry multiples. Slide 13 Current Peer Set: Dow, ExxonMobil Chemical, LyondellBasell, Westlake Growth capital reflects 100% CPChem growth capital. Growth EBITDA includes: 1-hexene, 10th Sweeny furnace, NAO expansion project and USGC petrochemical project.

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2015 Sensitivities

33 Sensitivities shown above are independent and are only valid within a limited price range.

MidstreamNet Income

$MM10¢/Gal Increase in NGL price 35$1/MMBtu Increase in Natural Gas price 30$10/BBL Increase in WTI price 15

Chemicals1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 35

Worldwide Refining (assuming 91% refining utilization)For a $1/BBL Increase in Gasoline Margin 220For a $1/BBL Increase in Distillate Margin 200

Impacts due to Actual Crude Feedstocks Differing from Feedstock Assumed in Market Indicators:

$1/BBL Widening LLS / Maya Differential (LLS less Maya) 50$1/BBL Widening WTI / WCS Differential (WTI less WCS) 40$1/BBL Widening WTI / WTS Differential (WTI less WTS) 15$1/BBL Widening LLS / Medium Sour Differential (LLS less Medium Sour) 10$1/BBL Widening ANS / WCS Differential (ANS less WCS) 10$0.10/MMBtu Increase in Natural Gas price (10)

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Capital Program

34

Sustaining Growth Total Capital Expenditures and InvestmentsConsolidatedMidstream(1)

Transportation 148 1,084 1,232 NGL 19 1,912 1,931

167 2,996 3,163 Chemicals - - - Refining(2) 813 299 1,112 Marketing and Specialties 78 92 170 Corporate(2) 155 - 155

1,213 3,387 4,600

Selected Equity AffiliatesDCP 175 375 550 CPChem 188 1,261 1,449 WRB 150 53 203

513 1,689 2,202

Capital Program(3)

MidstreamTransportation 148 1,084 1,232 DCP 175 375 550 NGL 19 1,912 1,931

342 3,371 3,713 Chemicals 188 1,261 1,449 Refining 963 352 1,315 Marketing and Specialties 78 92 170 Corporate 155 - 155

1,726 5,076 6,802 (1) Includes 100% of Phillips 66 Partners.(2) Includes non-cash capitalized leases of $11 million in Refining and $21 million in Corporate and Other.

Millions of Dollars2015 Budget

(3) Includes Phillips 66's share of capital spending by DCP, CPChem and WRB, which are expected to be self-funded.

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Non-GAAP Reconciliations

35

Adjusted EBITDA forecasts were derived on an EBITDA-only basis. Accordingly, elements of net income including tax and depreciation information are not available. Together, these items generally result in a significant uplift in EBITDA over net income.

2018E Adjusted EBITDA/ EBITDA project backlog post 2018

PSXP Run Rate EBITDA PSXP 2014 and 2018 run rate EBITDA estimates were derived on an EBITDA-only basis. Accordingly, elements of net income including tax and depreciation information are not available. Together, these items generally result in a significant uplift in EBITDA over net income. Run rate EBITDA reflects annualized EBITDA projections of assets immediately upon acquisition.

Millionsof Dollars

Year ending February 29 2016Reconciliation of PSXP Estimated EBITDA to Estimated Net Income*Estimated net income 82$ Plus:

Depreciation 20Interest expense 4Income taxes 9

Estimated EBITDA 115$ *Amounts reflect the sum of EBITDA and net income forecasts within each joint venture, multipliedby PSXP's expected ownership interest.

PSXP Run Rate EBITDA PSXP 2014 and 2018 run rate EBITDA estimates were derived on an EBITDA-only basis. Accordingly, elements of net income including tax and depreciation information are not available. Together, these items generally result in a significant uplift in EBITDA over net income. Run rate EBITDA reflects annualized EBITDA projections of assets immediately upon acquisition.

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36

Non-GAAP Reconciliations

2009 2010 2011 2012 2013 2014Chemicals Segment ROCENumerator Net Income 228$ 486 716 823 987 1,137 After-tax interest expense - - - - - - GAAP ROCE earnings 228 486 716 823 987 1,137 Special Items - - - 157 - 72 Adjusted ROCE earnings 228$ 486 716 980 987 1,209

DenominatorGAAP average capital employed* 2,024$ 2,275 2,563 3,142 3,825 4,489

*Total equity plus debt.

Annualized Adjusted ROCE (percent) 11% 21% 28% 31% 26% 27%Annualized GAAP ROCE (percent) 11% 21% 28% 26% 26% 25%

Millions of Dollars

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Non-GAAP Reconciliations

37

Marketing & Specialties Adjusted EBITDA Reconciliation 2009 2010 2011 2012 2013 20142009-2014 Average

U.S. Marketing U.S. Marketing net income attributable to Phillips 66 232$ 338 154 116 426 439 284 Plus:

Provision for income taxes 151 225 120 56 248 251 175 Net interest expense (47) (41) (32) - (0) (0) (20) Depreciation and amortization 34 30 30 29 15 15 25

U.S. Marketing EBITDA 370$ 553 271 201 689 705 465

Adjustments (pretax):Gain on asset dispositions (22)$ (234) - (4) - - (43) Impairments 59 12 - - - - 12 Pending claims and settlements - (56) - 62 (25) (44) (11)

Tax law impacts - - - - (6) - (1) U.S. Marketing Adjusted EBITDA* 407$ 275 271 259 658 661 422

International Marketing International Marketing net income attributable to Phillips 66 155$ 110 256 159 261 397 223 Plus:

Provision for income taxes 216 52 111 105 59 75 103 Net interest expense 1 - - - - - 0 Depreciation and amortization 92 104 114 107 80 68 94

International Marketing EBITDA 463$ 266 481 371 400 540 420

Adjustments (pretax):Gain on asset dispositions -$ - 3 - - (125) (20)

International Marketing Adjusted EBITDA* 463$ 266 484 371 400 415 400

Millions of Dollars

Marketing & Specialties Adjusted EBITDA Reconciliation 2009 2010 2011 2012 2013 20142009-2014 Average

SpecialtiesSpecialties net income attributable to Phillips 66 154$ 207 283 269 206 199 220 Plus:

Provision for income taxes 90 121 175 158 126 114 131 Net interest expense 2 - - - - - 0 Depreciation and amortization 6 7 8 11 8 11 9

Specialties EBITDA 252$ 335 466 438 341 324 359

Adjustments (pretax):Gain on asset dispositions -$ - (43) - (40) - (14) Exit of a business line - - - - 54 - 9

Specialties Adjusted EBITDA* 252$ 335 423 438 355 324 354

Marketing & Specialties Consolidated Segment

Marketing and Specialties net income attributable to Phillips 66 541$ 656 693 544 894 1,034 727 Plus:

Provision for income taxes 457 398 405 319 433 440 409 Net interest expense (44) (41) (32) - (0) (0) (20) Depreciation and amortization 131 140 153 147 103 95 128

Marketing and Specialties EBITDA 1,085$ 1,153 1,218 1,010 1,430 1,569 1,244

Adjustments (pretax):Gain on asset dispositions (22)$ (234) (40) (4) (40) (125) (78) Impairments 59 12 - - - - 12 Pending claims and settlements - (56) - 62 (25) (44) (11) Exit of a business line - - - - 54 - 9

Tax law impacts - - - - (6) - (1) Marketing and Specialties Adjusted EBITDA 1,122$ 875 1,178 1,068 1,413 1,400 1,176

Millions of Dollars

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Non-GAAP Reconciliations

38

Adjusted EBITDA by Segment Reconciliation 2009 2010 2011 2012 2013 20142009-2014 Average

MidstreamMidstream net income attributable to Phillips 66 384$ 384 2,147 52 469 507 657 Plus:

Net income attributable to noncontrolling interests 3 5 5 7 17 35 12 Provision for income taxes 204 184 453 29 264 309 241 Depreciation and amortization 99 74 82 83 88 91 86

Midstream EBITDA 690$ 647 2,687 171 838 942 996

Adjustments (pretax):EBITDA attributable to Phillips 66 noncontrolling interests -$ (9) (10) (13) (24) (45) (17) Proportional share of selected equity affiliates income taxes 9 3 1 - 4 3 3 Proportional share of selected equity affiliates net interest 119 119 97 85 110 118 108 Proportional share of selected equity affiliates depreciation and amortization 187 188 202 131 139 150 166 Lower-of-cost-or-market inventory adjustments - - - - - 2 0 Gain on asset dispositions (15) - (1,830) - - - (308) Gain on share issuance by equity affiliate (135) - - - - - (23) Impairments 70 - 6 523 - - 100 Pending Claims and settlements - - - (37) - - (6) Hurricane-related costs - - - 2 - - 0

Midstream Adjusted EBITDA* 925$ 948 1,153 862 1,067 1,170 1,021

* Proportional share of selected equity affiliates is net of noncontrolling interests.

ChemicalsChemicals net income attributable to Phillips 66 228$ 486 716 823 986 1,137 729 Plus:

Provision for income taxes 67 194 252 366 375 495 292 Chemicals EBITDA 295$ 680 968 1,189 1,361 1,632 1,021

Adjustments (pretax):Proportional share of selected equity affiliates income taxes 37$ 59 75 79 93 111 76 Proportional share of selected equity affiliates net interest 34 35 16 13 10 9 20 Proportional share of selected equity affiliates depreciation and amortization 192 183 198 213 246 258 215 Impairments - - - 43 - 88 22 Premium on early debt retirement - - - 144 - - 24 Lower-of-cost-or-market inventory adjustments - - - - - 3 1

Chemicals Adjusted EBITDA 558$ 957 1,257 1,681 1,710 2,101 1,377

Millions of Dollars

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Non-GAAP Reconciliations

39

Adjusted EBITDA by Segment Reconciliation 2009 2010 2011 2012 2013 20142009-2014 Average

RefiningRefining net income (loss) attributable to Phillips 66 (556)$ (661) 1,369 3,091 1,747 1,771 1,127 Plus:

Provision for income taxes (296) (121) 808 1,998 1,035 696 687 Net interest expense (1) (2) (1) - - - (1) Depreciation and amortization 641 659 664 655 685 704 668

Refining EBITDA (212)$ (125) 2,840 5,744 3,467 3,171 2,481

Adjustments (pretax):Proportional share of selected equity affiliates income taxes 1$ 1 4 5 (4) 3 2 Proportional share of selected equity affiliates net interest (179) (160) (140) (118) (95) (19) (119) Proportional share of selected equity affiliates depreciation and amortization 178 169 184 236 237 245 208 Net (gain) loss on asset dispositions - - 234 (185) - (145) (16) Impairments - 1,500 500 606 - 131 456 Canceled projects - 106 44 - - - 25 Pending claims and settlements 39 - - 31 - 23 16 Severence accruals - 28 24 - - - 9 Hurrican-related costs - - - 54 - - 9 Tax law impacts - - - - (22) - (4) Lower-of-cost-or-market inventory adjustments - - - - - 40 7

Refining Adjusted EBITDA (173)$ 1,519 3,690 6,373 3,583 3,449 3,074

Millions of Dollars

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Non-GAAP Reconciliations

40

Adjusted EBITDA by Segment Reconciliation 2009 2010 2011 2012 2013 20142009-2014 Average

Marketing and SpecialtiesMarketing and Specialties net income attributable to Phillips 66 541$ 655 692 544 894 1,034 727 Plus:

Provision for income taxes 457 398 406 319 433 441 409 Net interest expense (44) (40) (32) - - - (19) Depreciation and amortization 132 140 152 147 103 95 128

Marketing and Specialties EBITDA 1,086$ 1,153 1,218 1,010 1,430 1,570 1,245

Adjustments (pretax):Gain on asset dispositions (22)$ (234) (40) (4) (40) (125) (78) Impairments 59 12 - - - - 12 Pending claims and settlements - (56) - 62 (25) (44) (11) Exit of a business line - - - - 54 - 9 Tax law impacts - - - - (6) - (1)

Marketing and Specialties Adjusted EBITDA 1,123$ 875 1,178 1,068 1,413 1,401 1,176

Corporate Corporate net income (loss) attributable to Phillips 66 (140)$ (159) (192) (434) (431) (393) (292) Plus:

Provision for income taxes (75) (93) (97) (239) (263) (287) (176) Net interest expense 1 1 17 231 258 246 126 Depreciation and amortization 1 1 4 21 71 105 34

Corporate EBITDA (213)$ (250) (268) (421) (365) (329) (308)

Adjustments (pretax):Impairments -$ - - 25 - - 4 Repositioning Costs - - - 85 - - 14

Corporate Adjusted EBITDA (213)$ (250) (268) (311) (365) (329) (289)

Millions of Dollars

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Adjusted EBITDA by Segment Reconciliation 2009 2010 2011 2012 2013 20142009-2014 Average

Phillips 66 Phillips 66 net income attributable to Phillips 66 476$ 735 4,775 4,124 3,726 4,762 3,100 Less:

Income from discontinued operations 19 30 43 48 61 706 151 Plus:

Net income attributable to noncontrolling interests 3 5 5 7 17 35 12 Provision for income taxes 357 562 1,822 2,473 1,844 1,654 1,452 Net interest expense (44) (41) (16) 231 258 246 106 Depreciation and amortization 873 874 902 906 947 995 916

Phillips 66 EBITDA 1,646$ 2,105 7,445 7,693 6,731 6,986 5,434

Adjustments (pretax):EBITDA attributable to Phillips 66 noncontrolling interests -$ (9) (10) (13) (24) (45) (17) Proportional share of selected equity affiliates income taxes 47 63 80 84 93 117 81 Proportional share of selected equity affiliates net interest (26) (6) (27) (20) 25 108 9 Proportional share of selected equity affiliates depreciation and amortization 557 540 584 580 622 653 589 Gain on asset dispositions (37) (234) (1,636) (189) (40) (270) (401) Gain on share issuance by equity affiliate (135) - - - - - (23) Impairments 129 1,512 506 1,197 - 219 594 Cancelled projects - 106 44 - - - 25 Severence accruals - 28 24 - - - 9 Exit of a business line - - - - 54 - 9 Pending claims and settlements 39 (56) - 56 (25) (21) (1) Premium on early debt retirement - - - 144 - - 24 Repositioning Costs - - - 85 - - 14 Hurricane-related costs - - - 56 - - 9 Tax law impacts - - - - (28) - (5) Lower-of-cost-or-market inventory adjustments - - - - - 45 8

Corporate Adjusted EBITDA 2,220$ 4,049 7,010 9,673 7,408 7,792 6,359

Millions of Dollars

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Millions of Dollars 2014

Net Debt-to-Capital RatioShort-term debt 842$ Long-term debt 7,842 Less: Cash and cash equivalents (5,207) Net Debt 3,477$

Noncontrolling Interest 447$ Common Equity 21,590 Total Equity 22,037

Net debt-to-capital ratio 14%

Low High 100% CPChem Incremental Project Earnings ProjectionsEstimated incremental net income 1,000$ 1,313

Plus:Estimated income taxes 20 27 Estimated net interest expense - - Estimated depreciation 280 260

Estimated EBITDA 1,300$ 1,600

Millions of Dollars

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Phillips 66 Midstream Chemicals RefiningMarketing & Specialties Corporate

ROCE 2014Numerator Net Income 4,797$ 541 1,137 1,771 1,034 (393) After-tax interest expense 173 - - - - 173 GAAP ROCE earnings 4,970 541 1,137 1,771 1,034 (220) Special Items (981) 1 72 (195) (152) 0 Adjusted ROCE earnings 3,990$ 542 1,209 1,576 882 (220)

DenominatorGAAP average capital employed* 29,634$ 4,207 4,489 13,377 2,743 4,722 Discontinued Operations 96 - - - - - Adjusted average capital employed* 29,730$ 4,207 4,489 13,377 2,743 4,722

*Total equity plus debt.

Annualized Adjusted ROCE (percent) 13% 13% 27% 12% 32% -5%Annualized GAAP ROCE (percent) 17% 13% 25% 13% 38% -5%

Phillips 66 Midstream Chemicals RefiningMarketing & Specialties Corporate

CROCE 2014Numerator Net Income 4,797$ 541 1,137 1,771 1,034 (393) After-tax interest expense 173 - - - - 173 Depreciation and amortization 995 91 - 704 95 106

5,966 633 1,137 2,475 1,129 (114)Special Items (981) 1 72 (195) (152) 0 Adjusted CROCE earnings 4,985$ 634 1,209 2,280 977 (114)

DenominatorGAAP average capital employed* 29,634$ 4,207 4,489 13,377 2,743 4,722 Discontinued Operations 96 - - - - - Adjusted average capital employed* 29,730$ 4,207 4,489 13,377 2,743 4,722

*Total equity plus debt.

Adjusted CROCE (percent) 17% 15% 27% 17% 36% -2%Net Income/ GAAP Average Capital Employed (percent) 16% 13% 25% 13% 38% -8%

Millions of Dollars

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Midstream Chemicals RefiningMarketing & Specialties

FCF YieldNumerator Cash From Operations GAAP 559$ 230 2,615 563 Less: Change in Non-Cash Working Cap. (13) (0) 152 (127) Cash From Operations (excluding WC) 572 230 2,463 690 Less: P66 Equity affiliate cash from ops 205 230 584 - Add: Equity look through cash from ops 431 856 573 - Adjusted FCF (excl WC) 798$ 856 2,452 690

Total Capex GAAP 2,173 - 1,038 439 Less: Growth Capex 2,058 - 287 388 Sustaining Capex 115 - 751 52 Less: P66 Equity affiliate sustaining capex - - - - Add: Equity look through sustaining capex 148 150 134 - Adjusted Sustaining Capex 263$ 150 885 52

Free Cash Flow 535$ 706 1,567 639

DenominatorGAAP average capital employed* 3,346$ 3,053 15,052 3,382 Less: P66 Equity affiliate capital employed 512 3,053 2,507 - Add: Equity look through capital employed 3,667 3,515 5,231 - Adjusted average capital employed* 6,501$ 3,515$ 17,776$ 3,382$

*Total equity plus debt.

Adjusted FCFY (percent) 8% 20% 9% 19%GAAP CFO/ GAAP Capital Employed (percent) 17% 8% 17% 17%

Millions of DollarsAverage 2009-2014

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2009 2010 2011 2012 2013 2014100% CPChemNet Income $ 615 1,388 1,970 2,403 2,743 3,288

Plus:Income taxes 26 42 57 67 71 86 Net interest expense 58 63 18 8 (3) (2) Depreciation and amortization 285 255 258 265 278 296

EBITDA $ 984 1,748 2,303 2,743 3,089 3,668

Adjustments (pre-tax):Proportional share of equity affiliates income taxes 48 76 93 91 115 136 Proportional share of equity affiliates net interest expense 10 8 14 17 24 19 Proportional share of equity affiliates depreciation and amortization 98 112 138 157 214 220 Impairments - - - 91 - 175 Premium on early debt retirement - - - 287 - - Lower-of-cost-or-market inventory adjustments - - - - - 6

Adjusted EBITDA $ 1,140 1,944 2,548 3,386 3,442 4,224

Millions of Dollars

2009 2010 2011 2012 2013 2014100% DCP MidstreamNet Income $ 339 592 863 486 491 288

Plus:Income taxes 18 5 3 2 10 11 Net interest expense 254 253 213 193 249 287 Depreciation and amortization 405 413 449 291 314 348

EBITDA $ 1,016 1,263 1,528 972 1,064 934

Adjustments (pre-tax):Proportional share of equity affiliates income taxes (1) - - (1) (3) (6) Proportional share of equity affiliates net interest expense (18) (20) (25) (32) (40) (67) Proportional share of equity affiliates depreciation and amortization (41) (50) (59) (43) (67) (86)

Adjusted EBITDA $ 956 1,193 1,444 896 954 775

Millions of Dollars